Bear Bull Brawl
It was a bull bear brawl in the financial complex today. WFC had a quarter that exceeded expectations and trapped a bunch of shorts. I don't think that I've ever seen anything like it. My UYG finally went green, but it went to sickening depths yesterday. I mentioned that I had hedged it and had closed the hedge yesterday. Lucky timing. A reminder of what happens when a trade looks like it will print money indefinitely drawing too many moths to the flame.
My OCT 35 DUG calls finally went green today. I've had them for a little while. Energy and financials--lots of volatility. But we've seen this all before. I still think that the banks have much to work out. We will see some things that will still surprise. My main objective with UYG is to have exposure to the financial sector which I knew had been beaten down. It was under the theory that you can rarely buy at the bottom, nor sell at the top. It is a very small position--but when a small position moves +/- 20% in a day, it can wreak havoc.